LendingTree secures $475 million credit facility to reduce debt costs

CHARLOTTE - LendingTree, Inc. (NASDAQ:TREE), the online financial services marketplace currently valued at $861 million, has closed a $475 million credit facility that replaces its existing debt arrangements, the company announced Friday. The refinancing comes as InvestingPro data shows the company maintaining a solid current ratio of 1.22 despite recent market volatility.

The new facility consists of a $400 million five-year Term Loan B and a $75 million revolving credit facility. It replaces the company’s existing Term Loan B due 2028 and a separate loan agreement with Apollo.

The financing package carries interest rates of SOFR plus 450 basis points on the term loan and SOFR plus 350 basis points on the revolver. A 25-basis point reduction in interest margin is available upon achieving a B2 rating with stable outlook from Moody’s.

According to the company, the new arrangement eliminates several restrictive covenants from prior agreements, including minimum cash and AEBITDA requirements associated with the Apollo loan agreement.

"This transaction marks a major milestone in our ongoing efforts to enhance our financial foundation," said Jason Bengel, Chief Financial Officer of LendingTree, in a press release statement. According to InvestingPro analysis, the company maintains a "GOOD" overall financial health score, with particularly strong momentum as evidenced by its 53% price return over the past six months.

Bank of America served as lead left arranger and bookrunner for the facility, with Truist Securities acting as joint lead arranger and bookrunner.

The company indicated the proceeds will be used for refinancing existing debt and general corporate purposes. LendingTree also noted the new facility removes restrictions on share repurchases and strategic investments. With the stock trading near its 52-week high of $65.42, InvestingPro analysis suggests the company is currently slightly undervalued, with analysts maintaining positive earnings revisions for the upcoming period. For deeper insights into LendingTree’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Additional details on the transaction are available in the company’s Form 8-K filed with the Securities and Exchange Commission on August 21, 2025.

In other recent news, LendingTree Inc. reported a strong performance for the second quarter of 2025, significantly surpassing earnings expectations. The company achieved earnings per share of $1.13, far exceeding the anticipated $0.35, representing a substantial surprise of 222.86%. Revenue also outperformed forecasts, reaching $250 million compared to the expected $244.03 million, marking a 2.49% surprise. In addition, LendingTree entered into a $475 million loan agreement with Bank of America and Truist, consisting of $400 million in initial term loans and $75 million in revolving loans. The facility has a five-year maturity, with interest rates tied to SOFR plus a margin.

Moody’s Ratings recently affirmed LendingTree’s B3 Corporate Family Rating while upgrading its Probability of Default Rating to B3-PD and changing the outlook to positive. This includes assigning B3 ratings to the new Senior Secured First Lien Bank Credit Facilities. Furthermore, Truist Securities raised its price target for LendingTree to $62, maintaining a Buy rating due to the company’s strong second-quarter results. These developments highlight the company’s positive trajectory and the confidence of financial institutions in its future performance.

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